Should the Postal Service continue its consolidation plan?

Network consolidation will return in January 2015, a year after going on hiatus. The U.S. Postal Service announced recently that it would resume consolidations, closing up to 82 mail processing facilities. This second phase of the network consolidations should be done prior to the 2015 fall mailing season.

The Postal Service expects the changes to yield $750 million in annual savings and to affect about 15,000 employees. In 2012 and 2013, the Postal Service consolidated 141 mail processing facilities, resulting in cost savings of about $865 million.

Loyal readers of our blog will recall that the Postal Service put its network consolidation plans on hold in early 2014 while it reconsidered its proposed changes to service standards for First-Class Mail. (See our blog from earlier this year on the delay.) Phase two will affect the service standards for First-Class Mail and Periodicals as well, eliminating the overnight standard for most First-Class Mail. Periodicals service standards would range from 3 days to 9 days, versus the current 2 to 9 days.

The Postal Service says eliminating excess capacity through consolidation is one of the few options it has to cut costs. Consolidation will also allow the Postal Service to establish a “low-cost, technology-centric delivery platform necessary to serve the mailing and shipping industry for decades to come.”

Still, the planned consolidations are likely to rankle some. At least one postal union has already come out strongly against the plan, saying it will degrade service and lead to mail delays. It intends to vigorously fight the closures. On the other hand, industry has generally supported Postal Service efforts to reduce costs and improve efficiencies, as long as service isn’t irreparably harmed.

We welcome your thoughts. Should the Postal Service continue with consolidations given the decline in mail volume and the potential cost savings? Or should the Postal Service first explore ways to use the excess capacity to provide services that might yield additional revenue sources, such as warehousing or other logistics services?

Comments (167)

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i work as a freelance bookkeeper in 8 different offices. i get at least one call a week from someone saying they sent a check. check never cleared bank. this started occurring right after all the local mail in maryland was re-routed through baltimore and not the local post offices. you want ups and fedex to take over everything? then keep this stupid plan in place. maybe just consider doing a better job????

So yes, I live in Redding,CA rural area , I am an learning disabled student
So, I order this one book from amazon.com and the usps in redding, would not Deliver it to the front door or porch this time, I filled out the usps websites forum for the item in the tracking to be if its too big for the mailbox for it to be sent to the front door forum on my usps website, and the mailman instead posted on the tracking itself Notice Left and that I would have to fill out the Redelivery page to get it the next day it seems, instead of the tracking saying it got the the post office message and no out for delivery message that day, it was worded like Arrived at Unit then it read Notice Left, please note the mailman didn't leave any such note in our mailbox or front door, last year the mailman we had did do the front door thing, so I guess they changed the mailman on our route since this driver never gets out of their car just puts stuff in the mailbox, its fine, since when it got Redelivery Scheduled for the next day by book came and the driver stuck it into our mailbox, which we have to walk a bit to get to it unlike the old house we had that had it on the sidewalk instead of across the street like here, last thing was Delivered, In/At Mailbox on Shipment Activity that's after I had to fill out the Redelivery forum online, I don't no if this mailman would of deliver it the next day without the fill out, again the day the tracking online read Notice Left their was no real notice left either at the mailbox or front door, I saw the mailman that day drive by like normal put stuff in the mailbox never tried to send it to front door if it didn't fix in the mailbox, I don't no if these mailman read the forum it only reads it as if the item would not fit into the mailbox then they have the option to send it to the front door or porch again, I never seen this new mailman person do anything this year besides stick stuff in our mailbox at our parents home. its good that I got my amazon order, but if I knew filling out that forum would cause the mailman not to deliver it until the next day I wouldn't of use it from my usps website, again I don't no if they had it that other day or if it just came the day I filled out the redeliver forum for selecting the next day deliver which seem to work since it was then marked Delivered, In/At Mailbox for parents house etc.. which we live.

The plants can't handle the work they have now. Expess mail failures have increased and the expected day of deliveries are not being met and customers are complaining daily. Keep the plants open to increase the processing of mail and grow the business. Closing plants and delaying the mail will only chase customers away from the business and when the Postal Service decides to privatize, they won't have any customers to serve. Who wants that kind of business.

It seems the government always wants to take away from Northern California. Less populated areas, rural communities and small towns/townships as usual are being set aside. We pay taxes like those in Redding, Sacramento or SF Bay area however they get all the good things by taking our water, our taxes and now we will get screwed by the postal service. I don't understand what you want from us and why we don't seem to matter to the state or federal govenment. So, if you want me to use the postal service more which I have been doing then leave us alone. If you close post offices, etc we will have to drive miles and miles to even go to the post office for stamps etc. Not all our senior citizens use a computer so that will be one more thing you will dump on the seniors who have worked years and years paying all their taxes. I know there must be something you can do other than take away from us who live in Northern California.

I voted no. The reason is we are not saving money consolidating the plants. In my area the gaining office can not handle the mail, they had to put on a huge addition which cost 5 million dollars, hire more people, mail gets to all the offices late incurring wait time overtime for private truck drivers, clerks, mailhandlers, and carriers. We had figured the wait time in one office for the year was 3/4 million dollars. There is no way a letter takes a 400 mile hike and still saves money.

Letter volume is down. What I don't understand is how will limiting service and diminishing delivery standards help? It seems that this will only drive more business away. This may be the nail in the coffin.

The US Postal Service is a "billion dollar non profit" that's belongs to all the people of this country but there are a few venture capitalist who wants to make it a "for profit company". Their goal would be to make a profit for themselves and their share holder. At this very moment Mitt Romney and Staples stores who are venture capitalist are trying their best to privatize it. If they get their way, door to door delivery to every home would stop, which would be a violation of the United States Constitution, some people would be forced to buy PO boxes, a lot of decent paying jobs would be gone forever, and they could decide to sell it to whomever they wanted to, China for instance. I say no, do not consolidate. The post master general and congress must be stopped before they turn this country into a third world nation.

I have been a clerk with USPS since 1995. I am also a customer. I have seen a reduction in clerks in small office which has resulted in less safe working conditions and decreased productivity. The transfer of processing in the Tucsoin plant to the Phoenix plant has resulted in an extreme delay orf mail. We have entirely lost our ability to provide 1-day Express service anywhere in the state except within our three digit postal zone.
The USPS estimates of savings is grossly overstated, and many of the moves to privitize services has resulted in MORE costs that estimated.
USPS managers were pushing for no Saturday delivery, yet has eagerly added Sunday delivery which is costing the Postal Service much more than the service income received. Doesn't this seem like a poor management decision?
The decision to change the delivery pick up times at many post offices has also delayed mail. One of our local post offices has their final outgoing mail picked up at 3:00pm, leaving 2 hours of mail sitting in the post office until the next day. Another poor decision relating to good customer service.
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USPS cost studies have shown that in some cases consolidation costs were overestimated. However studies have also shown that the Mail Processing consolidations result in long-term savings to the Postal Service.

The postal accountable enhancement act of 2006 is the cause for the postal service so call debt. How can any business have to pay over 5 billion dollars a year for ten years to set a side for the next 75 years to pre-fund the retirement health care.

The Postal Service is an independent agency that does not depend on tax money for its operations but is subject to congressional control. Under federal law, it can't raise prices more than the rate of inflation without approval from the commission. As everyone thinks why don't they raise the price .20 cents for first class stamp which would cover up to two ounce letters. They would get rid of the additional ounce charge which should make people happy. Our government should also give them back the additional money paid into the mandated pre funded retirement fund.

In the last couple of years it has taken more time for my mail to arrive. Sometimes it is a day or 2 but has been as much as 5 days late. While most of that mail is not so important I can't wait, sometimes it is a part for my car that I need right now! Tracking sucks, it is the worst system in the business!

No the consolidations should NOT continue. The most recent financial statements show that the only money the USPS is "losing" is the prefunding dollars mandated by Congress. Without that undue burden USPS is making a small profit. No company can grow a business by cutting the quality of it's service. How can we add Sunday delivery yet still talk about eliminating Saturday delivery in the same breath? It does not make sense. We need to be inmproving the speed and quality of delivering our product to entice people to use our service over the other options out there.
I am a proud USPS employee at a plant in Grand Island, NE.

I resent the whole mess that the Postal Service is in. The main reason for all of their money problems goes back to the 2006 law to pre-fund 75 years worth of retirement in 10 years. NO OTHER BUSINESS, PUBLIC OR PRIVATE HAS THIS BURDEN! If we could just get Congress to revoke this legislation, the vast majority of the Postal Service's problems would go away. As far as consolidation goes, I do not think backwards is the way to go. After many years of good, dependable service, consolidations have and will in the future delay the mail. In this day in age, I think it is contrary to all of the available technology in the world to lessen the quality of mail delivery. The United States Postal Service has the word SERVICE in it's name. Let's keep the SERVICE in the United States Postal Service.

Everyone knows that the biggest problem facing USPS financially is the mandate that Congress has placed on USPS to pre fund the retiree program. Another major problem we are facing is the blatant push by our Postmaster General to privatize the USPS. Pat Donahoe has been trying to force the hand of Congress to vote and change legislation to end our retiree pre funding since he became PMG. He closes plants and offices across the country, disrupting employee's lives and enacts excessing of clerks only to revert everyone back to where they were before and pays out millions in grievance money. Anyone who works as an SSA can clearly see that all of the new Lean Mail standards and Premier Gold office designations are a business model based on UPS and their business model initiated by Management Employee's who were previously employed at one point by UPS. I don't believe the USPS can be run on Business Models that mimic those of privately run companies because of our unique Public service that we provide based on the foresight of our Founding Fathers.

The closing and consolidating is not a necessity. Congressional responsible response it the key to sustaining a profitable PO. There seems to be no accountability for the USPS to take internal measures for bad decision making. This adds to additional monies that can aid its profits.
This effort of our own top management to set up the USPS for failure should be treated as the criminal act that it is. Why aren't our leaders in the USPS , Board of Governors, and Congress not listening to the people of this country regarding their Post Office? Because of their intent to privatize at all cost, and no regard for the public's interest.
Where are all the Benjamin's? Overpayments from past and current pension and benefit accounts. Current account for phantom employees that do not exist yet ( prefunding for future employees). Where is all this money? Where has it gone? What has it been used for? Why does Congress refuse to give it back? Can it be proved that this money is still accounted for? Where are all the Benjamin's? This is money that has been earned by the worker's of the postal service. This is money the public have exchanged willfully for the service rendered. Who is in possession of all this money? Who has been stealing all the Benjamin's?
If this money exist, why not use it to assist the company that produced it in the first place? Greed and privatization equalling to the Austerity of the public's Post Office must stop. It is a moral, economic, and constitutional issue. The OIG has the responsibility to make it righteous.

Slower service means lower service. The USPS historically has been a service for the American people. The USPS has been there to deliver mail in times of war, great terror, depression, catastrophe and natural disasters. The USPS is letting the American public down by slowing service, letting themselves be the cash cow for decades having monies stolen from them by other agencies and generally not standing up for the American public's constitutional right of universal mail delivery. I have almost 25 years and love my job.

1. What will be the impact of consolidation on service to residents of Central Kentucky?
2. Will next day first class local delivery be preserved? i.e. will a letter mailed from one address to another within the Lexington service area still be expected for delivery the following day.
3. What savings will the Postal Service achieve by consolidating mail processing operations away from the Lexington Plant?
4. How will those savings be achieved?
5. What specific numbers can the Post Office site to show a cost savings as opposed to cost shifting?
6 What is the expected reduction in the number of jobs of the Lexington Plant? How many of those jobs are being shifted to a new location, as opposed to being eliminated?
7. How much will it save when fuel goes up? When the Lexington KY plant open fuel was $0,30 per gal.

UPS and FedEx have already shown that they will not serve or if they do they, will impose a surcharge on any rural address they deliver to.
They have and will impose fuel surcharges.
They will fight any damage claim you file claiming bad packaging.
If UPS and FedEx can and will deliver to any house in the US for the same money why do I receive packages from the USPS that were shipped by UPS or FedEx to the Post Office for delivery.
Once the USPS is dismantled and USPS and FedEx and several other companies have access to my mail box all bets are off on what will be put in mailbox and by whom.
The Inspection service will not be able to police all the companies that will handle the mail.
The problem with the USPS is Congress and Management seem to be in bed together to dismantle it and take the most profitable parts for themselves, or whomever is lining their pockets and leave the rest for the USPS. Which would then require the Federal Government to subsidize.

Giving people slower service isn't going to win customers back. By closing these facilities you're slowing down the mail. I still mail my bills in cause I personally don't trust putting my account info online. So that means it'll take my bills longer to get to me and it'll take longer to get to their destination. Recently my family and I took a vacation to Orlando and like we always have we mail post cards home to my sons grandparents. We mailed them on a Tuesday. They arrived two weeks later once we had ol already been home over a week and now you're telling me it'll be slower with these plant closures? No thanks.

I think the biggest problem the Post Office has is finding other areas of revenue. They knew many years ago that the mail volume will level out and it did yet, they kept spending money. PMG states that the Post Office has financial woes yet continues to blunder money on useless plans and ideas. I work in a 1/2 closed facility that is Supposed to close early next year. They plan to move our mail to a southern facility and absorb our plant. They already took our outgoing mail last year but, couldn't close us completely. My facility the building was bought and paid for. No lease and has had better profit and numbers than the facility (our district HQ) they are consolidating us to. Now keep in mind they did not do their research last year. Clerks cannot be excessed outside 50 miles. The gaining facility is 87+ miles away. Now if people are excessed the PO has to pay them money including travel time back and forth. These are costs that are well hidden and never accounted for. As of right now we have had nothing but mail being canceled at that facility and sent back down to use to process for the consumers. There is nothing is worse than getting Delayed mail day in and day out. Mail being sent from our area over 87+ miles away just to be sent back to be processed. The costs of extra trucks is astounding. I have seen letters that were mailed in the same city that took over 3 days to get to the consumer. If the PMG gets his way it will take a week to get a letter sent across the street to your neighbor.
There are a lot of hidden costs that they never consider when closing a facility. I feel that the quality of the mail must be to insure that our consumer get their products in a timely matter. (Mail getting miss sent can take days to weeks to get to it's destination) Consolidating does not solve this issue it only put a Band-Aid on it and drives consumers to look elsewhere for business because it will take to long to deliver something just in their community. Consolidation does not solve the PO woes it only adds to them.

Within 5 years of this action (closing 82 additional processing plants) the United States Postal Service will cease to exist. This is a "point of no return" for PMG Donaho. It will destroy customer confidence in the Post Office and other sources of communication by hard copy will be utilized. In 5 years what is left of the Postal Service will be privatized (much to the delight of ultra right) so that a profit motive can be introduced into another civil institution. This ultra basic form of civil communication will cease to be available to the citizens of the United States (check your constitution for congresses duty to provide for a post office and the maintenance of postal roads).
This is definitely the wrong road for the Postal Service to go down!

If the plants are not running 24 hour and USPS wants to delay mail further. Why not run the plant 24 hour, instead of on 2 shifts. From my prospective the logistics are not being worked out and the decisions are like wagging the dog.
How is it we pay for contract trucking to stop at our office on a hotshot (mid day run) empty and load up with outgoing mail . . . only to have another truck arrive to take outgoing mail an hour and 15 minutes later? We're a small office, we don't take in that much mail, so the last truck leaves with very little outgoing mail.
Send us mail on the hotshot that is worked at the plant, it gives the clerks opportunity to work the mail in preparation for tomorrow. It levels off the personnel needed in the morning with the load leveling of mail.
And speaking of load leveling. We see no change in mail volume arriving Monday vs Tuesday.(for example)
We are overloaded on Monday. Tuesday we're looking for something to work.
This is a long way of saying that yes, its possible that plant consolidation is needed but why are we not looking at the plants working more efficiently, the dispatchs revamped which trickles down to solving staffing issues with offices.

The Post Office consolidation was based on the shrinking volume of mail from the 2007 peak. When our economy collapsed, so did the mail volume. But last year and this past year , we are noticing a significant increase in mail volume. This is the current trend, so if we continue to close mail processing plants, we are going to find that we will need to reopen them ASAP. This process of closing and then reopening plants, will be more costly than just keeping them open. And the elephant in the room is the government report that states "Revenue saved from closing mail processing plants, might be offset by the drop in customers due to our lower service standards." So the danger here is that we could dismantle the best Postal Service on the planet, and not save one dime. Do Americans want that? I know Darrell Issa and Staples want that!

Give these guys a break. The mail deliveries are bad enough with out closing different facilities.
I am tired of this country not caring about about citizens, and put some money into the post office, but they sure find the money to give illegals everything for nothing.

Not only will it degrade the service but also eliminate good Postal jobs. Also what will you have as an incentive to keep and hire future workforce if you looking to constantly downgrade the postal service. People become nervous or fearful working for an unstable company

Further plant closures and consolidations will only delay mail that much more. The PMG should be trying to expand services that the general public want and need, such as banking. Additional closures and consolidations will only drive away customers. What business does this? If we truly run the USPS as a business, this would not be on the table. We need to keep customers, not show them the door.

i vote no no way. Just another attempt to privatize the P.O. They want the public to think the P.O. is in need of a billionair to come rescue us. Just a ploy to be able to sell shares and make millions.

All of the closures should be stopped and the recent ones should be reversed. The usps says the packages are increasing and they are going after the market but they are shutting down their network. Everyone knows packages require more space to process. That is why ups and fedex hand off a lot of their ground shipments to the postal service. The current executives all need to be removed and replaced. They have all told so many lies to the people they can't even keep them straight anymore. This is all about privatizing another public service just to make some CEO a little richer and rob the people of a service that is very much needed and used by the lower income people. If the people do not start standing together and fighting for these services they will all be privatized and will no longer be affordable for anyone. All these consolidations will do is make service even worse and once it is done it will be to late. The postal service should be adding services not cutting them. And for all of the people who pay their bills online don't worry as son as they take away all of the alternatives they will start charging for that too!!

USPS has the most comprehensive door to door delivery system in the world. Right now is only beginning of a consumer driven boom where virtually everything one needs is available on line and can be quickly shipped to their home or workplace. This is no time to dismantle a network that every other shipper would love to have. The very voices that criticize USPS are working hard to take this network away from the American people and make it theirs. Now is the time for USPS to embrace a bright future and stand tall. USPS has an amazing opportunity at hand. We need to take the ball and run with it. Let's put our brightest minds to work leading the way identifying fresh and exciting new ways to serve the American people! Anyone can tell you why something won't work and they are a "dime a dozen". . . the winners in this new era will show us how! As a proud USPS worker I am ready to step up. Let's get this done!

Its seems this Postmaster General is incompetent! Anyone that spends 700 million a year roughly the cost savings projected on round two of consolidations on consultants to just tell him what he wants to hear is not fit to lead the Postal Service in the future....a position backed up by the Lizard group whom actually saved the auto and steal industries saving millions of jobs.

Having almost 30 years employment with the USPS and having gone through several changes, I can see the ramifications of the biggest mistake made to date. We are here to provide a service to the public; this is the mission which was pounded in for the first 15 years of my employment.
We lost our plant last year and service is no longer superior. Lost, delayed, miss sent mail has become the norm here. I mail 20 to 30 pieces of mail a month and receive 5 to 10 a day, I’ve had 3 checks lost in the last 6 months. Outgoing mail is delayed and mail coming to me that took 3 weeks to arrive.
The input from management told the same lies at every public forum I attended, “service will not be affected and this will save us 10 million dollars a year consolidating these plants.” We still don’t know what the extra runs are costing them, and three large mailers have already left and taken with them over 15 million a year income for the USPS. One of them took their 10 million+ to Fed Ex, and they informed the USPS that they expected service they were promised and if they didn’t get it they were not going to stay with USPS. If these other offices looked into the lost revenue I’d bet they would see the same thing from these plant closings. Upper management is playing with the numbers to show what they want. We provide a service that no other delivery service in the world is able to provide. If we don’t provide it, the largest postal service in the world will cease to exist because of poor management.
They waste more time on teleconferences, harping on lower level management, because some carrier took an extra 3tenths time on their route. They want to save some money kill half those jobs in the districts all the way up to DC.

Stop the consolidation now !! It will undermine service, delivery times etc. and therefore cut USPS
business and revenues. Those cuts will make further cuts "necessary" and so on. You are
promoting a downward spiral. If you want to save USPS, improve service don't deteriorate it!
The financial problem is due to the pre-funding of pensions----something that NO other company
has to do. Tell Congress to remove that requirement and quit laying people off and cutting service!!

cutting more services is not the answer., it will only slow delivery times and will cause patrons to look for other options.
The PMG needs to try to think in a postive manner, everything he presents is negative and wanting to cut services and jobs.
What is wrong with the board of governors?

IF THE CONSOLIDATIONS WERE TRULY THOUGHT OUT THUS FAR, FORT LAUDERDALE NEVER WOULD HAVE BEEN CLOSED FOR CONSOLIDATION . THE TRUTH IS WE SEEM TO BE THE BLIND LEADING THE BLIND. AT TIMES, THERE IS NO RYTHUM OR REASONS; JUST BECAUSE WE SAID SO. DECISIONS HAVE BEEN MADE TO MAKE THE POSTAL SERVICE FAIL AND WE CAN NOT JUST SIT IDYLE BY AND BE SILENT ANY LONGER. " YOUR SILENCE DOES NOT PROTECT YOU" OR OUR FUTURE. THE POSTAL SERVICE IS A UNIVERSAL SERVICE FOR ALL MANKIND AND NEEDS TO BE PROTECTED. CONSOLIDATIONS ONLY MEANS MORE CONTRACTED (NON-POSTAL) CALL CENTERS AND LESS CUSTOMER CONNECT/ CUSTOMER SERVICE. NOT EVERYONE WANTS TO DO IT THEMSELVES AND MOST PEOPLE WANT A KNOWLEGEABLE PERSON TO TALK TO; TO FEEL A CONNECTION AND TO GET ANSWERS WITHOUT PRESSING THIS NUMBER OR THAT. WHATEVER CONSOLIDATIONS IN THE FUTURE THAT TAKE PLACE TRUE ANALYSIS NEEDS TO BE PERFORMED. LOGISTICS ARE THE KEY...AGAIN MIAMI BEING THE NEW SCF FOR SOUTH FLORIDA WAS NOT THOROUGHLY THOUGHT THROUGH WE ARE A LARGE DENSELY POPULATED AREA, ONE WAY INTO MIAMI AND ON WAY OUT????? MAIL IS LOST IN BLACK HOLE.

The savings claimed are vastly overstated. The "Losing" facility has no way to excess people. Plants are closed and people are placed on standby until THEY decide when they want to retire. Claiming savings at time of closing is bogus.

We must keep first class in-house with NO out-sourcing of any kind, and for every letter we lose due to the Internet, we need a package to replace it. We must keep daily mail service as originally promised with at least 5-6 day delivery. The "If it fits it ships" campaign was great, but we need more.
All those that hate their jobs should retire asap.

I believe there should be a deeper investigation into where the loss truly is.. A deeper look at the executive management, salaries, bonuses, spending issues. There's always a way to cut down costs/expenditures without penalizing, cutting jobs, to the detriment of employees, the public mail services.

Consolidation is really beginning to affect the working conditions of its employees by trying to cram to many operations and people into one small area. This is creating a safety hazard for most of the employees. When you consolidate you create more work, more employees and more mail. There is only so much mail, people and machines that can be placed in a plant before it becomes impossible to maneuver before you place your employees in harm's way.

Cutting from the top high priced execs makes the most sense. I would really miss my local substation. The personel there really make it an enjoyable place. My mail service is more efficient than ever. My mother depends on the Post Office to pay her bills since she is not computer literate. I'm sure she is not the only one in that situation.

Why upend peoples lives, by forcing them to work, sometimes over 100 miles away, when nobody is sure if it is the right thing to do? I work at a plant in CT scheduled to close. I might be forced to move, possibly out of state. I have 2 children in grammar school. One has special needs and health issues. We would have to find new doctors, new therapists, and a new school system for them. Just so this PMG can boost his political ego. I haves worked here for over 25 years and that is the thanks I get

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